Group 1: Stock Performance - Paccar's stock closed at $98.32, reflecting a -1.28% change from the previous session, underperforming the S&P 500's daily loss of 0.22% [1] - Over the last month, Paccar's shares decreased by 7.11%, which is better than the Auto-Tires-Trucks sector's loss of 20.08% and the S&P 500's loss of 7.48% [1] Group 2: Earnings Forecast - Paccar is expected to report an EPS of $1.59, indicating a 29.96% decline from the same quarter last year [2] - The revenue forecast for Paccar is $7.05 billion, representing a 14.34% decrease compared to the corresponding quarter of the prior year [2] - Full-year estimates predict earnings of $7.48 per share and revenue of $31.09 billion, reflecting year-over-year changes of -5.32% and -1.51%, respectively [3] Group 3: Analyst Estimates and Rankings - Recent modifications to analyst estimates for Paccar are crucial as they indicate changing near-term business trends, with positive revisions suggesting analysts' confidence in the company's performance [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Paccar as 3 (Hold) [6] - Over the past month, there has been a 1.17% decline in the Zacks Consensus EPS estimate for Paccar [6] Group 4: Valuation Metrics - Paccar has a Forward P/E ratio of 13.32, which is a premium compared to the industry average Forward P/E of 11.13 [7] - The company's PEG ratio stands at 1.79, while the Automotive - Domestic industry average PEG ratio is 0.82 [7] Group 5: Industry Context - The Automotive - Domestic industry, part of the Auto-Tires-Trucks sector, has a Zacks Industry Rank of 132, placing it in the bottom 48% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Performance - Paccar (PCAR) closed at $99.18, reflecting a +0.77% change from the previous day, underperforming the S&P 500 which gained 2.13% [1] - Over the past month, Paccar's shares have decreased by 6.5%, which is less severe than the Auto-Tires-Trucks sector's decline of 20.63% and the S&P 500's drop of 9.57% [1] Earnings Projections - The upcoming EPS for Paccar is projected at $1.62, indicating a 28.63% decrease compared to the same quarter last year [2] - Revenue is expected to be $7.22 billion, representing a 12.37% decline from the corresponding quarter of the previous year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $7.57 per share and revenue at $31.73 billion, reflecting changes of -4.18% and +0.52% respectively from the prior year [3] - Recent changes to analyst estimates suggest a shifting business landscape, with positive revisions indicating optimism about the company's outlook [3] Valuation Metrics - Paccar's Forward P/E ratio is currently at 13, which is a premium compared to the industry's average Forward P/E of 10.67 [6] - The company has a PEG ratio of 2.56, while the average PEG ratio for Automotive - Domestic stocks is 0.77 [6] Industry Context - The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector, which has a Zacks Industry Rank of 160, placing it in the bottom 37% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - The report titled "PACCAR Inc. - 2025 Strategy Playbook" provides an analysis of PACCAR Inc.'s strategic focus and plans in response to a challenging global macroeconomic environment characterized by geopolitical tensions and potential trade wars [2][3]. Industry Overview - The Global Medium & Heavy Truck market has transitioned to a normalization phase since 2024 after a period of high growth driven by post-pandemic demand and easing supply chain issues, leading to increased production rates [3]. - In 2025, the market is expected to see a slight decrease of up to 10% in year-on-year deliveries, although demand for new and used trucks remains strong, primarily due to replacement needs and the introduction of sustainable truck models [4]. Market Trends - The introduction of CO2 pricing on conventional diesel and petrol trucks starting in 2025, along with stricter CO2 emission limits, is anticipated to promote the adoption of electric and sustainable fuel-powered trucks [5]. - The development of charging infrastructure and the electric mobility ecosystem is expected to accelerate the transition towards sustainability in traditional markets [5]. Strategic Focus - The report includes a SWOT analysis, identifying strengths, weaknesses, opportunities, and threats that PACCAR Inc. faces in the medium to long term [11]. - Key strategic priorities for 2025 are outlined, focusing on leveraging strengths and addressing weaknesses to capitalize on market opportunities [11]. Financial Performance - The report provides a detailed financial performance analysis based on the latest available results, including revenue trends, profitability growth, and cash flow from operations [10][13]. Market Outlook - A comprehensive outlook and demand forecast for the Global Medium & Heavy Truck market for the medium term is included, highlighting key driving and restraining forces that will shape the industry's future [6][12].

Employment and Workforce - As of December 31, 2024, the company employed approximately 30,100 individuals, with 38% based in the U.S.[46] Environmental Initiatives - The company has publicly disclosed greenhouse gas emissions since 2014 and has set reduction targets approved by the Science Based Targets Initiative (SBTi)[49] - More than 80% of the company's factories are certified as zero waste-to-landfill, and all truck sales are certified to use biofuels[50][53] - The company is committed to developing zero emissions trucks, including battery-electric and hydrogen fuel cell technologies[52] - The company’s SuperTruck 3 program aims to develop next-generation Class 8 battery-electric vehicles, supported by the U.S. Department of Energy[54] Financial Performance and Risks - The company reported a potential loss of $126.3 million from a 10% unfavorable change in foreign currency exchange rates as of December 31, 2024, down from $259.7 million in 2023[205] - The company has no commodity contracts outstanding as of December 31, 2024, compared to a potential loss of $3.3 million in 2023[206] - The company’s fixed-rate loans showed a fair value loss of $157.7 million in 2024, compared to $146.5 million in 2023[205] Safety and Compliance - The company’s focus on workplace safety has resulted in a recordable injury rate lower than the U.S. industry average[45] Investment and Development - The company is investing in a 21-gigawatt hour (GWh) battery manufacturing facility in Marshall County, Mississippi, in partnership with Cummins, Daimler Trucks, and EVE Energy[58]

Trucking giant PACCAR (PCAR) is trading cheap at the moment from a valuation perspective.  Its forward earnings multiple of 1.68 is lower than the industry’s 2.95 as well as its own one-year average of 1.72. PCAR has a Value Score of B. Image Source: Zacks Investment ResearchShares of the company have declined 2% over the past year, underperforming the industry, sector and S&P 500. Its close competitor Volvo (VLVLY) rose around 18% over the same timeframe.One-Year Price Performance ComparisonImage Source: Z ...

Paccar (PCAR -2.42%) published its fourth-quarter and full-year 2024 results Tuesday morning, and investors didn't seem too impressed by its performance. As a result, the storied truck maker's stock fell by more than 2% in price on the day. This did not compare favorably to the 0.9% gain of the bellwether S&P 500 index.Falls on both the top and bottom linesFor the quarter, Paccar's total revenue was just over $7.9 billion, representing a notable come-down from the nearly $9.1 billion in the same period of 2 ...

| >16t Truck Market Size | | --- | | PACCAR Strategy | | Investing Throughout the Business Cycle | | MX Engine Production | | Zero Emission Trucks | | Battery Charging Solutions | | Battery Strategy | | Battery Cell Production Joint Venture | | Batteries in Multiple Applications | | Autonomous Trucks | | Role in Autonomous Trucking | | Aurora Partnership | | Advantage & Proprietary Content | | Connected Services | | Platform Science Partnership | | PACCAR Innovation Center | | Global Embedded Services | | M ...

PACCAR Inc. (PCAR) recorded earnings of $1.68 per share for the fourth quarter of 2024, which beat the Zacks Consensus Estimate of $1.66 but declined from $2.70 per share reported in the year-ago period. Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.Consolidated revenues (including trucks and financial services) came in at $7.9 billion, down from $9 billion in the corresponding quarter of 2024. Sales from Trucks, Parts and Others were $7.36 billion.Key TakeawaysRevenues from the T ...

Paccar (PCAR) reported $7.36 billion in revenue for the quarter ended December 2024, representing a year-over-year decline of 14.3%. EPS of $1.66 for the same period compares to $2.70 a year ago.The reported revenue represents a surprise of -1.04% over the Zacks Consensus Estimate of $7.44 billion. With the consensus EPS estimate being $1.68, the EPS surprise was -1.19%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine thei ...

Paccar (PCAR) came out with quarterly earnings of $1.66 per share, missing the Zacks Consensus Estimate of $1.68 per share. This compares to earnings of $2.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.19%. A quarter ago, it was expected that this truck maker would post earnings of $1.82 per share when it actually produced earnings of $1.85, delivering a surprise of 1.65%.Over the last four quarters, the company has su ...